U.S. based Worthington Steel announced plans to acquire Germany’s Kloeckner & Co in an all-cash deal valuing the metals trading firm at US$2.4 billion, aiming to strengthen its position in North America.

Kloeckner operates roughly 110 sites across North America and Europe, offering carbon flat-roll steel, electrical steel, aluminum, and other products. Worthington’s proposed bid of EUR11 per share.

The combined company would become North America’s second-largest steel service centre, with revenues exceeding US$9.5 billion. Swoctem, the investment vehicle of German billionaire Friedhelm Loh and Kloeckner’s largest shareholder, has agreed to tender its 41.53% stake. The deal, structured as a voluntary tender offer in Germany, is expected to close in the second half of the year.